October 18, 2023 (MLN): Domestic bullion experienced a significant surge on Wednesday as the 24-karat gold gained Rs6,400 per tola, closing at Rs206,500.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold increased by Rs5,487 to Rs177,040 at closing.
While 10-gram 22-karat gold stood at Rs162,287, up by Rs5,030 compared to the previous close.
The price of silver also went up in the domestic market, as the 24-karat and 10-gram 24-karat silver closed at Rs2,550 and Rs2,186.21, up by Rs50 and Rs42.87 respectively.
It is important to mention that the local bullion was officially closed yesterday amid the ongoing development to establish a single unified rate.
The surge in gold prices is attributed to the spike in international gold prices, coupled with the declining value of the Pakistani Rupee (PKR).
The PKR lost 3.25 rupees in the interbank and 5 rupees in the open market in today’s trading session.
The pressure from the strengthening of the local unit had prevailed over the gold market for a significant time. However, today’s depreciation benefited the metal market.
Gold is denominated in U.S. dollars, hence when the PKR strengthens against the USD, the value of PKR-denominated gold falls.
Additionally, the surge in international gold prices, driven by rising conflicts in the Middle East, also boosted gains in the local market.
Investors prefer safe haven assets like gold during times of political and financial uncertainty.
International spot gold is up by 1.2% on the day and is currently trading at $1,946.26.
Similarly, international spot silver also witnessed an increase of 1.75% and is currently trading at $23.2.
